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Hasbro revenue meets expectations but earnings miss as inflation squeezes shoppers

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A worker arranges boxes of Hasbro board games on a shelf at a Target Corp. location in Emeryville, California.
David Paul Morris | Bloomberg | Getty Images

Hasbro

Here’s how the toymaker performed compared with Wall Street estimates, according to Refinitiv:

Earnings per share: $1.42 vs. $1.52 expected.Revenue: $1.68 billion vs. $1.68 billion expected.

The toy maker faced tough comparisons in the third quarter, but surging prices added to the pressure. “As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer,” CEO Chris Cocks said in an earnings release.

Revenue fell 15% compared to the period last year, led by a 35% decrease in entertainment revenue.

For the fourth quarter, the company expects flat results versus last year.

As prices for goods and supplies surge, the toy and game giant has increased prices for products like Nerf Blasters and My Little Pony figures this year.

Cocks told “Closing Bell” in early October that the toy market remains resilient even through bad times.

In the previous quarter, Hasbro reported relatively strong growth compared to the rest of the gaming market, atop new releases including an expansion of the popular trading card game “Magic: The Gathering.” It’s “Wizards of the Coast” business, which controls “Dungeons & Dragons” also saw significant profit growth in that quarter.

Shares of rival Mattelincluding the upcoming Barbie movie and a toy agreement with SpaceX.

Read the earnings release here.

This is breaking news. Check back for updates.

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